To promote ease of doing business, markets regulator Sebi on Wednesday allowed securities funded through cash collateral to be considered as maintenance margin for margin trading facility (MTF).
The move will also help alleviate the burden of additional collateral towards the maintenance margin for the margin trading facility.
The development took place after the Securities and Exchange Board of India (Sebi) received representations from market participants through the Industry Standards Forum (ISF) to relax the requirement pertaining to the margin trading facility.
In a circular, Sebi said stocks or units of equity exchange-traded fund (ETFs) deposited as collateral with the brokers and those purchased using margin trading must be kept separate. There should be no mixing of these two types for calculating the funding amount.
“In case the broker has collected cash collateral from the client in the form of margin for availing margin trading facility and the trading member has given

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The offer received bids for 25.61 crore shares as against 1.53 crore shares on offer.

The Indian rupee witnessed range-bound trade and settled for the day on a flat note at 83.98 (provisional) against US dollar on Wednesday as the support from the lower level of crude oil prices and soft US dollar was negated by a weak trend in domestic equities. The benchmark 30-share Sensex dropped 398.13 points, or 0.49 percent, to 81,523.16 while the broader NSE Nifty index ended at 24,918.45, down 122.65 points, or 0.49 percent, from its previous close. A significant correction in asset classes like the dollar index and crude oil prices supported the rupee, while a negative trend in domestic equities and concerns over global economic growth capped the upside. At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.97 against the American currency and touched an intraday high of 83.93 and a low of 83.98 against the American currency.